Name: Operating Profit Margin

Definition: Operating profit margin focuses on profits from the company’s core business — before interest payments and taxes. It reflects how well the business manages operating costs relative to sales. Strong operating margins show efficient day-to-day operations. Shrinking margins may reveal rising overhead, pricing weakness, or declining efficiency.

Interpretation:
• In '2021', BAM's operating profit margin was 74.1%, highlighting profit earned from core business operations. Industry average for Other Consumer Services in '2021' stood at -14.0%.
• In '2023', BAM's operating profit margin was 13.6%, highlighting profit earned from core business operations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2023' stood at -19.5%. Industry average declined by 5.6% from previous year.
• In '2024', BAM's operating profit margin was 22.2%, highlighting profit earned from core business operations. The increase since '2023' reflects strengthening financial performance. Industry average for Other Consumer Services in '2024' stood at -16.7%. Industry average increased by 2.9% compared to previous year.
Overall, BAM's operating profit margin has been volatile but showed a downward trend over the past 3 years.

Formula: Operating Profit Margin = Operating Income / Revenue

Good Range: Often 10%-30% depending on business model.